The European Investment Bank (EIB) is considering a loan of EUR 74 million to modernise the cross-border Hungary-Ukraine rail link.
The project has a total estimated value of EUR 153 million and aims to facilitate freight transport between Ukraine and the European Union.
The investment does not involve the construction of a new railway line between the two countries; the funding will be used to modernise the existing railway infrastructure on the Hungarian side of the border, particularly in the Záhony and Eperjeske areas.
What will be modernised
Záhony is connected by rail to the Ukrainian town of Chop, whilst Eperjeske is linked to the Batovo area. Goods pass between Ukraine and the European Union via these points.
The project involves work on the railway infrastructure and the facilities used for transhipment of goods. The aim of the project is to facilitate and increase the volume of rail freight transport and to reduce the time required for border operations.
The investment is important for Ukraine as rail transport to EU countries has taken on a major role during the war. The development of these connections provides Ukraine with an additional route for exports and imports and facilitates access for Ukrainian goods to the European market.
The project forms part of the European Union’s ‘Solidarity Corridors’, through which alternative routes for the transport of Ukrainian goods were developed following the outbreak of the war.
For Hungary, the investment would mean increasing the capacity of the rail infrastructure on the eastern border and shifting a larger proportion of freight transport to rail.
According to the EIB, the project is still at the assessment stage, and the EUR 74 million loan will only be granted once the analysis has been completed and the project approved.
The project could play an important role in developing trade between Ukraine and EU Member States, by providing a more efficient rail link at one of Ukraine’s main gateways to the European market. The modernisation of border crossing points could help to reduce delays and enable faster handling of freight trains.
Share on:
